FOR:  ITHACA ENERGY INC.

TSX VENTURE, AIM SYMBOL:  IAE

July 6, 2010

Second Quarter 2010 Production Update

LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - July 6, 2010) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Ithaca Energy Inc. (TSX VENTURE:IAE)(AIM:IAE) and its wholly owned subsidiary Ithaca Energy (UK) Limited
("Ithaca" or "the Company"), an independent oil & gas company with exploration, development and production
assets in the UK sector of the North Sea, is pleased to announce increasing production throughout Q2 2010 and
that the Company remains on target to achieve forecast 2010 production levels.

Production in the second quarter averaged 10,217 barrels of oil per day ("bopd") gross (4,914 bopd net to
Ithaca) with a June average of 10,678 bopd (5124 bopd net to Ithaca). This represents a 17% improvement over
first quarter production of 4,193 bopd net to Ithaca.

The Beatrice Complex average daily sales volumes for the period as measured at the Nigg storage facility are
summarised as follows:

                                 Gross (bopd)     Net to Ithaca (bopd)

     Average Q1 2010                   10,217                    4,914
     April                             10,334                    4,990
     May                                9,659                    4,637
     June                              10,678                    5,124

The average realised price for production in April was $73.66/bbl and in May was $73.35/bbl (before any
additional price uplift at the point of sale to a third party). Deliveries for June are currently being priced.

Production in the second quarter has increased compared to the first quarter as a result of the Beatrice Field
coming strongly back on line after an outage during the first quarter as well as the Jacky field performing
above expectation. Preparatory work for the workover programme (consisting of coiled tubing well clean up) on
Beatrice Alpha has been successfully completed and, as a consequence, a small enhancement to existing daily
production has been observed.

A Hydraulic Workover Unit ("HWU") will be installed on the Beatrice Alpha platform for the main workover
operation in mid July. The HWU will be utilized to replace downhole pumps on four production wells and replace
tubing in one water injection well. In addition, certain well interventions will involve perforating across a
previously untapped section of the Beatrice reservoir ("B Sands") to access incremental reserves. A similar
intervention was very successfully executed in the Bravo area of the field in Q1 2010. The combined impact of
all well interventions is anticipated to increase gross production rates by 1550 bopd, 775 bopd net to Ithaca,
for the remainder of 2010.

Partners in the Jacky field are Ithaca (47.5%), Dyas UK Ltd (42.5%) and North Sea Energy (UK) Ltd (10%).

Joint Venture Partners in the Beatrice Field, including Beatrice Bravo are Ithaca (50%) and Dyas UK Ltd (50%).

In accordance with AIM Guidelines, Lawrie Payne, MA Marine Geology (Alberta & Columbia) and Chairman of Ithaca
Energy is the qualified person that has reviewed the technical information contained in this press release.

Forward-looking statements

Some of the statements in this announcement are forward-looking. Forward-looking statements include statements
regarding the intent, belief and current expectations of Ithaca Energy Inc. or its officers with respect to
various matters. When used in this announcement, the words "expects," "believes," "anticipate," "plans," "may,"
"will," "should", "scheduled", "targeted", "estimated" and similar expressions, and the negatives thereof,
whether used in connection with the estimated production levels, anticipated time of first oil, oil in place,
hydrocarbon composition or otherwise, are intended to identify forward-looking statements. Such statements are
not promises or guarantees, and are subject to risks and uncertainties that could cause actual outcome to
differ materially from those suggested by any such statements. These forward-looking statements speak only as
of the date of this announcement. Ithaca Energy Inc. expressly disclaims any obligation or undertaking to
release publicly any updates or revisions to any forward-looking statement contained herein to reflect any
change in its expectations with regard thereto or any change in events, conditions or circumstances on which
any forward-looking statement is based except as required by applicable securities laws.

FOR FURTHER INFORMATION PLEASE CONTACT:

Ithaca Energy
Iain McKendrick
CEO
+44 (0) 1224 650 261
imckendrick@ithacaenergy.com

OR

Ithaca Energy
Nick Muir
CXO
+44 (0) 1224 650 267
nmuir@ithacaenergy.com

OR

Ithaca Energy
John Woods
CDO
+44 (0) 1224 650 273
jwoods@ithacaenergy.com

OR

Pelham Bell Pottinger Public Relations
Philip Dennis
+44 (0) 207 861 3919
pdennis@pelhambellpottinger.co.uk

OR

Pelham Bell Pottinger Public Relations
Elena Dobson
+44 (0) 207 861 3147
edobson@pelhambellpottinger.co.uk

OR

Cenkos Securities plc
Jon Fitzpatrick
+44 (0) 207 397 8900
jfitzpatrick@cenkos.com

OR

Cenkos Securities plc
Ken Fleming
+44 (0) 131 220 6939
kfleming@cenkos.com

Neither TSX Venture nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Ithaca Energy Inc.